Hoping to reduce traffic congestion and
pollution, the Housing Authority of the City of Santa Barbara, CA (HASB) built a
42-unit development, Casa de Las Fuentes, where tenants must sign a lease that
requires them to work downtown and allows them to own no more than one vehicle
per rental unit.

The development, which has no federal
assistance, also has an admission preference for renters who do not own a
vehicle and who agree not to own one during their tenancy.

The city redevelopment agency and city
council worked closely with HASB on this project, which was seen as a
demonstration of what can be done to reduce the number of motor vehicles on the
road each day.The
Santa Barbara
work force owns about 30,000 vehicles. Many workers live in more affordable
areas north and south of the city and commute 40 to 50 miles one way.

Santa Barbara
is one of the most expensive housing markets in the country, where a two- or
three-bedroom tract house can cost $750,000, according to Robert Fredericks of
the HASB staff. Homes along the southern coast area of
Santa Barbara
County
have a median price of $1.1 million, he said.

The market rent for a one-bedroom
apartment is about $1,500, and a two-bedroom unit rents for about $2,500. Casa
tenants generally pay no more than 30 percent of their income for rent, which
generally ranges from $481 to $651 for a studio apartment. Rents for one-bedroom
units are about $815, depending on income. The development has 18 studio and 24
one-bedroom apartments.

DOWNTOWN JOBS

Many downtown jobs are in the service
and retail sectors and include bank tellers, store clerks, waiters, and
receptionists. HASB’s marketing objective was to provide housing to young
singles and older workers who tend to have these jobs.

The lease requires tenants to work with
a downtown area designed by HASB. A tenant who becomes unemployed has 90 days to
find a new job within the downtown district or to move out of the building.The property was opened in 2003, and HASB has not been forced to evict
anyone for this reason.

“We haven’t run up against that yet,
and I am not sure that is going to be an issue,” said
Fredericks
. “We are definitely not in the business of having people move in and stay for
a long time in this type of housing.” HASB wants to help workers temporarily
while they save money so they can afford other housing, he explained.

HASB consulted with legal counsel to
ensure that the admission preferences and occupancy requirements do not conflict
with fair housing laws.According to
Fredericks
, counsel advised that there would be no conflict if the city council viewed
these preferences and requirements as part of an important public policy
objective.The city council approved
a resolution to this effect.

The lease requirements operate on the
same basis as student housing, said
Fredericks
. “If you are a student and lie in a dormitory, you have housing on campus.
But if you no longer have full-time status as a student, you are required to
leave,” he said.

LIMITED PARKING

Casa has 42 parking spaces, one per
housing unit, compared to the one and one-half parking spaces usually required
by the city.
Fredericks
said the city agreed to the lower requirement after HABC promised to monitor
the number of cars closely. Tenants pay $50 a month for parking, a fee meant to
act as a disincentive for motor vehicle ownership. Currently, only 16 spaces are
rented.

The land for the development sat vacant
for years but is along a main transportation corridor that HASB viewed as a
perfect location to build affordable housing for downtown workers who would not
have to drive to work. The project’s density of 57 units per acre helped
reduce per-unit costs.

The building was constructed according
to standards set by the architectural board for the city’s Pueblo Viejo
District.Design details include
stucco finish, repeating arches, and landscaped courtyards with fountains, all
inspired by Santa Barbara’s historic buildings. The apartments feature
balconies and patios.

Fredericks
said that the property blends in with tits neighborhood. “This is a tourist
town, and we’ve had people turn into La Casa thinking it is a bed and
breakfast, asking where they can check in,” he said. We take that as a
compliment.”

“The architectural board really holds
our feet to the fire when it comes to the design,” said
Fredericks
. “We can’t skirt those rules even as a housing authority, and frankly, we
have built up a lot of good will because of the way we have designed our
buildings. The entire community looks at our housing favorable as a result.”

“La Casa is located near shopping and
restaurants, and the area is pretty vibrant all day long and into the night,”
said
Fredericks
. “It has been a terrific development.”

Financing included a $3 million
tax-exempt note issued by HASB and purchased by a local bank at 5.125 percent
interest, which was recently refinanced for 4.375 percent. The city
redevelopment agency provided a $1.8 million deferred low-interest loan to be
paid by residual receipts, and the HASB provided $700,000 in cash equity to the
project.

In addition, the HASB received a
$600,000 pre-development loan at 3 percent through the California Housing
Finance Agency’s HELP program.This
loan was paid after the project was completed.